ALROSA wins auction for two license areas in Western Yakutia

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On August 9, 2013, OJSC ALROSA won the auctions for the right to use subsurface mineral resources of two diamondiferous license areas in Western Yakutia: Piropovy Ruchey and the Zakonturnaya deluvial placer of the Udachnaya pipe.

Both areas are located close to ALROSA’s operating areas, and will extend its resource base.

The Zakonturnaya deluvial placer, 0.12 km2 in area, is located on the flank of the Udachnaya pipe. ALROSA offered RUB 24.878 million (against the opening price of RUB 22.617 million) for the rights to use subsurface mineral resources for exploration and diamond mining.

In January 2011 the Russian State Register of Mineral Reserves recorded the subsoil placer diamond reserves for open-pit mining at +0.5 mm, totalling 211 thousand cubic meters of sands and 109.5 thousand carats in С1 category.

The Piropovy Ruchey deposit, 1.26 km2 in area, is also located on a flank of the Udachnaya pipe. ALROSA offered RUB 104.679 million (against the opening price of RUB 95.163 million) for the right to use subsurface mineral resources for exploration and mining of placer diamonds.

In January 2011, the Russian State Register of Mineral Reserves recorded the subsoil placer diamond reserves for open-pit mining at +0.5 mm. On-balance C1 reserves are estimated at 1,147 thousand cubic meters of sands, and 595.5 thousand carats of rough diamonds. С2 reserves are estimated at 430 thousand cubic meters of sands, and 279.5 thousand carats of rough diamonds. Off-balance С1 reserves are estimated at 339 thousand cubic meters of sands, and 113.5 thousand carats of rough diamonds.

The results of the auction are subject to approval by the Government of the Russian Federation.